On May 27, the European Central Bank (ECB) announced its weekly main refinancing operations (MRO). The operation was conducted on May 28 and attracted bids from euro area eligible counterparties of €6.13 billion, €1.21 billion higher than the bid amount of the previous week. The amount was allotted in full at a fixed rate equivalent to the prevailing MRO rate of 0.00 per cent, in accordance with current ECB policy.
On May 29, the ECB conducted a three-month, longer-term refinancing operation to be settled as a fixed rate tender procedure with full allotment, with the rate fixed at the average rate of the MROs over the life of the operation. The operation attracted bids of €1.40 billion from euro area eligible counterparties. The amount was allotted in full in accordance with current ECB policy.
Also on May 29, the ECB conducted a six-day US dollar funding operation through collateralised lending in conjunction with the US Federal Reserve. This operation attracted bids of $0.02 billion, which was allotted in full at a fixed rate of 2.90 per cent.
Domestic Treasury bill market
In the domestic primary market for Treasury bills, the Treasury invited tenders for 91-day and 182-day bills for settlement value May 30, maturing on August 29, and November 28, 2019 respectively. Bids of €58 million were submitted for the 91-day bills, with the Treasury accepting €7.50 million, while bids of €32 million were submitted for the 182-day bills, with the Treasury accepting €2 million. Since €9 million worth of bills matured during the week, the outstanding balance of Treasury bills increased by €0.50 million, to stand at €329.20 million.
The yield from the 91-day bill auction was -0.355 per cent, a decrease of 0.1 basis point from bids with a similar tenor issued on May 23, representing a bid price of €100.0898 per €100 nominal. The yield from the 182-day bill auction was -0.315 per cent, also a decrease of 0.1 basis point from bids with a similar tenor issued on May 16, representing a bid price of €100.1595 per €100 nominal.
During the week under review, there was no trading on the Malta Stock Exchange.
Today the Treasury will invite tenders for 91-day bills maturing on September 5.